Indian bonds fell the most in about a year after the central bank upped the ante against inflation by saying it may consider selling bonds to soak up excess funds from the banking system.

The yield on 10-year notes climbed as much as nine basis points to 7.30%, after Governor Shaktikanta Das announced the plan Friday, while keeping the policy rate unchanged. “The timing and quantum of such operations will depend on the evolving liquidity conditions,” he said.

The move comes as the central bank intensifies its fight against inflation amid a surge in oil prices and a strong dollar that’s exerting pressure on the currencies of emerging markets, including India. The decision indicates a shift away from using interest rates to liquidity-management tools to control inflation.

The “RBI announcement about OMO sales came as a warning to markets that they want to keep tight liquidity to control inflation,” said Venkatakrishnan Srinivasan, founder at Rockfort Fincap.